Bethlehem City Council members were largely pleased with Sivak’s report.

“We have seen a general increase in the revenues over the last four years,” said Councilman J. William Reynolds, chairman of council’s finance committee, which met Wednesday. “The financial stability of the city is directly tied to the economy.”

Expenses through the first six months of 2013, however, are about $1.6 million more than the first six months of 2012. Council members said it was somewhat disappointing the city’s personnel and medical costs continue to increase despite cutting 69 positions over the past three years.

Reynolds and other council members said that while they were pleased with the 2013 budget so far, they were somewhat fearful of the 2014 budget, which will have both debt and salary increases.

Raises for city employees are expected to cost an additional $750,000 next year and Bethlehem’s debt payment is increasing by a similar level, Sivak said.

Unlike many other municipalities and government entities, however, Bethlehem’s pension payments are actually expected to decrease next year, by about $5,000, Sivak said.